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Bad debts expense is also use to write off accounts receivable and not for loans receivables.
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Allowance for Bad Debts vs bad debt expense?
An allowance for bad debt is essentially a reduction in a bank's accounts receivable. The allowance for bad debt equals the amount of the banks loans that it does not expect to collect.
What is loans receivable?
The expected payment of a loan, it is an asset account. When you loan money you debit loans receivable and credit cash (both assets) When you receive the payment for the loan you debit cash and credit loans receivable.
What is the double entry for provision for bad debts?
Dr. Bad debt xxx Cr. Assets/Portfolio xxx Below entry wat i underestand is the wrong entry since provision is a liability which is deducted from the loans (assets) it is always a credit balance, it can never appear on the debit (above is the correct entry). Debit Bad Debt Expense Credit Allowance for Bad Debts (a contra-account on the asset side of the balance sheet)
What is Ebenezer Scrooge's business?
Loans and debts.
What is a good strategy to consolidate your debts?
A good strategy to consolidate you debts is to combine multiple loans, reduce the number of bills each month, lower the monthly payment, and reduce long-term cost of loans or debts.
How do I protect myself from paying brother's debts after death?
You will never be responsible for his debts unless you co-signed on loans or debts. If you are the executor of his estate, then you must pay his debts out of the estate.
What is the difference between allowances for loan losses and provision for loan losses?
The allowance for loan losses is a contra-asset account that appears on the balance sheet as an offset to loans receivable. It is an account with a running balance of the allowances for loan losses established to report loans receivable at their net realizable value. For example, if you have $100,000 in loans receivable and an allowance for loan losses of $20,000, the net realizable value of the loans receivable reported on the balance sheet would be $80,000 ($100,000 - $20,000). The allowance for loan losses is reduced when a loan or a portion of a loan is written off as uncollectible. The allowance for loan losses is increased when a provision for loan losses is established. The provision for loan losses is the current period expense for loan losses established in the current period. This provision is reported in the statement of operations (or income/loss statement). It represents the amount that is added to the allowance for loan losses in the current reporting period.
What is the average American net worth?
The average American's net worth is approx. $37,000.Net worth is:All your assets (bank account balances, stocks, bonds, accounts receivable, cold hard cash, the value of your physical possessions, such as cars, houses, jewelry, expensive clothing, computers. etc.)MINUSAll your debts and liabilities (this includes credit cards, mortgages, car loans, personal loans, torts you've committed against another person, etc.).For example, if you have $50 in the bank, $20 in your pocket, no stocks, no bonds, no accounts receivable, and you have a house that is worth $100,000, and a car that is worth $20,000.You have $60,000 in outstanding mortgages, $5,000 for your car loan, and $4,000 in credit card debts, and $11,000 in student loans,Then, you net worth is $40,070.
What is meant by a consolidation personal loan?
Consolidation personal loans are used to pay multiple debts from just one single payment. They can be used to pay the debts of multiple credit cards, loans and store cards.
What is the formula of provision expense ratio?
The provision expense ratio is calculated by dividing the provision for loan losses by the average total loans outstanding during a specific period. The formula is: Provision Expense Ratio = (Provision for Loan Losses / Average Total Loans) x 100.
What is the maximum amount of loans that can be filed on a chapter seven bankruptcy?
While there does not seem to be any limit to the number of loans or debts you can claim on a Chapter 7 Bankruptcy, there are restrictions as to the nature of your claims. Debts that will not be discharged include debts from alimony or child support, debts from accidents involving intoxication, educational benefit overpayment or loans made or guaranteed by any government department, debts for taxes, and certain debts for injuries caused by the debtor to another entity in a willful or mailicious manner. More information on Chapter 7 Bankruptcy rules and regulations is available at http://www.uscourts.gov.
What debts do you still have to pay after filing bankruptcy?
student loans child support
